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HomeMy WebLinkAboutResolution 2015-107 Authorizing to receive from Avra Water Co-op a conveyance of rights and assumption of obligations of Central Arizona Project Municipal and Industrial Water Service SubcontractMAItANA RESOLUTION NO. 2015-107 RELATING TO UTILITIES; AUTHORIZING THE TOWN MANAGER AND STAFF TO TAKE ALL NECESSARY AND APPROPRIATE STEPS FOR THE TOWN OF MARANA TO RECEIVE FROM AVRA WATER COOP, INC. A CONVEYANCE OF RIGIITS AND ASSUMPTION OF OBLIGATIONS OF CENTRAL ARIZONA PROJECT MUNICIPAL AND INDUSTRIAL WATER SERVICE SUBCONTRACT; APPROVING A DRAFT FORM OF CONVEYANCE AGREEMENT; AND AUTHORIZING THE MAYOR TO SIGN THE CONVEYANCE AGREEMENT AND ALL NECESSARY CENTRAL ARIZONA WATER CONSERVATION DISTRICT SUBCONTRACT DOCUMENTATION AT THE CONCLUSION OF TTIE APPROVAL PROCESS WHEREAS the Town of Marana's current Central Arizona Project (CAP) water allocation is significantly smaller than the quantity of water delivered to Marana Water Department customers; and WHEREAS the T'own's Strategic Plan III adopted in January 2015 includes Community focus area initiative 25, "Continually seek and evaluate new water resources to increase the Town's water portfolio "; and WHEREAS Avra Water Co-op, Inc. has an 808 acre -foot allocation of CAP, which Avra Water and the Town would like to have conveyed to the Town; and WHEREAS state law and Arizona Department of Water Resources (ADWR) policies establish procedures for proposed conveyance of CAP subcontract entitlements; and WHEREAS the Mayor and Council find that acquisition of Avra Water Coop's CAP subcontract entitlements is the best interests of the Town and its citizens and businesses. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MAR ANA, ARIZONA, AS FOLLOWS: SECTION 1. The proposed draft "Agreement for Conveyance of Rights and Assumption of Obligations of Central .Arizona Project Municipal and Industrial Water Service Subcontract" ( "Conveyance Agreement ") attached as Exhibit A to this resolution is hereby approved. SECTION 2. The "Town Manager and Town staff are hereby authorized to take the necessary and appropriate steps to acquire Avra Water Coop's Full 808 acre -foot CAP subcontract entitlement, including without limitation all of the following on the Town's behalf: 1. Submit a joint letter to ADWR, requesting review of and recommendation. for the proposed conveyance 2. Provide all pertinent documents relating to the proposed transfer to ADWR, including the proposed draft Conveyance Agreement and water supply development plans demonstrating how the proposed transfer will meet water management objectives, review 00043382,DOCX 11 Miiranta Reso1 LItIon No, 2015 -147 9/25/2015 3:341 1_`JC criteria, and decision g uidelines set forth in the ADWR's Revised Polic Re Transfer of CAP Municipal and Industrial Water Subcontract Entitlements. 3. Provide an additional information or documentation re b ADWR. 4. Demonstrate that the Town has the same or a hi priorit for the CAP subcontract entitlement, if another entit re part or all of the entitlement durin the public comment period. 5. Provide an additional information or documentation that ma be re b the Secretar of the Interior after the Secretar receipt of ADWR's recommendation. 6. Obtain Arizona Superior Court validation of the contracts. SECTION 3. After approval b the Secretar of the Interior and the Central Arizona Water Conservation District (CAWCD), the Ma is hereb authorized and directed to si the Conve Contract and an associated CAWCD subcontract documentation on behalf of the Town conve Avra Water Co-op's CAP subcontract entitlement (or as much of it as is approved b the Secretar for conve to the Town. SECTION 4. The Town Mana and staff are authorized to perform all acts necessar or desirable to g ive effect to this resolution. PASSED AND ADOPTED BY THE MAYOR AND COUNClk OF THE TOWN OF MARANA, ARIZONA, this 6'11 da of October, 201.5. 'A N M RANA ATTEST: 4p 'Allronson, Town Clerk Ma Ed H6nea 0119 0 Ito] L ?A 00043382.DOCX /I Marana Resolution No. 2015-107 - 2 - 9/25/2015 3:34 PM FJC Exhibit A to Resolution No. 2015- 107 AGREEMENT FOR CONVEYANCE OF RIGHTS AND ASSUMPTION OF OBLIGATIONS OF CENTRAL ARIZONA PROJECT MUNICIPAL AND INDUSTRIAL WATER SERVICE SUBCONTRACT Now, THEREFORE, Avra and Marana do hereby mutually agree as follows: 1. Avra hereby assigns, transfers, and conveys to Marana all its rights, title, and interest in and to 808 acre -feet per annum. of CAP M &I water to which Avra is entitled under the terms of Aura's Subcontract. 2. Marana has read Aura's Subcontract, knows the contents and requirements thereof, and accepts the assignment of 808 acre -feet per annum of CAP M &I water under the terns of Avra's Subcontract, assumes the obligations thereof, including without limitation the obligation to pay 00043265.DOC:X Il - 1 - 9/25/2015 3:47 PM FJC; Exhibit A to Resolution No. 201 5 -107 any and all amounts due under Avra's Subcontract with respect to the 808 acre -feet per annum of CAP water assigned and agrees to be bound by all terms and conditions of Avra's Subcontract. 3. Marana agrees to execute an amendment to Marana's Amended Subcontract increasing its annual - entitlement to CAP M &I water by 808 acre -feet per annum. Doug Schneider, President````` , Ed Honea, Mayor Date: Date: ATTEST: Jocelyn Bronson, Town Clerk 00043265.DOCX 11 -2- 9/25/2015 3:47 PM FJC STATE OF ARI70NA SS. County of Pima ) Exhibit A to Resolution No. 2015 -107 APPROVED AS To FORM: Frank Cassidy, Town Attorney CENTRAL ARIZONA WATER CONSERVATION DISTRICT Ubon President 00043265.DOCx I1 -3 - 9/25/2015 3:47 FM FJC